LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7526 NOTE PREPARED: Jan 9, 2025
BILL NUMBER: SB 434 BILL AMENDED:
SUBJECT: Utility Transparency and Reporting.
FIRST AUTHOR: Sen. Hunley BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Recovering Lobbying Expenses: This bill provides that the Indiana Utility
Regulatory Commission (IURC) may not authorize a public utility that: (1) provides retail electric or natural
gas service; and (2) is under the IURC's jurisdiction for the approval of rates and charges; to recover through
the utility's retail rates and charges any direct or indirect costs associated with specified expenses and
activities related to lobbying, legislative action, political activities, charitable giving, litigation, investor
relations, and other specified activities and expenses.
IURC Reporting: Beginning in 2025, The bill also requires a utility to file with the IURC an annual report
that includes specified information concerning costs to: (1) the utility; or (2) an affiliate of the utility; that
are related to these expenses or activities and that are directly billed or allocated to the utility. It requires the
IURC to make available on the IURC's website a direct link to the annual reports provided by all utilities
under these provisions.
Utility Bill Breakdown: It also provides that on any customer bill issued by a utility after December 31, 2025,
the utility must include a break down of the charges and fees that make up the total amount owed, including
a description of the service or cost associated with each charge or fee. It also sets forth certain charges and
fees that must be delineated as specific line items on each customer bill.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Recovering Lobbying Expenses: This bill will increase the IURC’s
workload in ensuring that utilities’ proposed rates do not recover expenses related to lobbing and political
activities. The bill’s requirements are within the agency’s routine administrative functions and should be able
to be implemented with no additional appropriations, assuming near customary agency staffing and resource
levels.
IURC Reporting: The bill will also increase the workload of the IURC to (1) receive and review annual
reports submitted by utilities concerning certain expenses and activities and (2) make these reports available
on the Commission’s website, beginning in FY 2026. Additionally, the bill could increase the workload of
SB 434 1 the IURC to ensure compliance with the requirements in the bill. Increases in workload are expected to be
accomplished within existing resource and funding levels.
Explanation of State Revenues:
Explanation of Local Expenditures: Utility Bill Breakdown: Municipal utilities that do not already
breakdown the components of customer bills as statute describes will have an increased workload in ensuring
the bills they send to customers are compliant. This may require reformatting physical or electronic
statements. Any expenditures from reformatting is expected to be negligible.
Explanation of Local Revenues:
State Agencies Affected: IURC.
Local Agencies Affected: Municipal utilities.
Information Sources:
Fiscal Analyst: Abdul Abdulkadri, 317-232-9852.
SB 434 2